Shippers Conditions Index steadies in March

FTR Associates’ Shippers Conditions Index for March did not show much change from the previous month. The index currently stands at -5.3, which FTR says represents a moderately unfavorable condition that is expected to persist until the onset of the busy fall shipping season.

At that point, FTR says capacity will begin to tighten further resulting in deterioration in the shipping environment. By the end of the year and into 2013, shippers can expect further fall off in their position with carriers as their options become more limited and costs increase due to new hours of service regulation implementation and the accompanying reduction in available capacity, FTR says.

The SCI sums up all market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero is unfavorable.

“After a steep drop in February the SCI stabilized in March as conditions in the trucking industry steadied,” says Larry Gross, FTR senior consultant. “February demand was unusually strong but it appears that some of that volume was simply freight moving earlier this year due to the mild winter weather.  The seasonal jump from February to March was not as strong as usual this year.”

The May Shippers Update also includes discussion on how the situation in China affects the U.S. economy.

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